Federal ruling blocks Hawaii's climate change tourist tax on cruise ships

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Federal ruling blocks Hawaii's climate change tourist tax on cruise ships

2026-01-01 10:26 Last Updated At：10:40

HONOLULU (AP) — A federal appeals court ruling on New Year's Eve blocked Hawaii from enforcing a climate change tourist tax on cruise ships passengers, a levy that was set to go into effect at the start of 2026.

Cruise Lines International Association challenged the tax in a lawsuit, arguing that the new law violates the U.S. Constitution by taxing cruise ships for entering Hawaii ports. They also argued it would make cruises more expensive. The lawsuit notes the law authorizes counties to collect an additional 3% surcharge, bringing the total to 14% of prorated fares.

The levy increases rates on hotel room and vacation rental stays but also imposes a new 11% tax on the gross fares paid by a cruise ship’s passenger, prorated for the number of days the vessels are in Hawaii ports. The lawsuit notes the law authorizes counties to collect an additional 3% surcharge, bringing the total to 14% of prorated fares.

In the nation’s first such levy to help cope with a warming planet, Hawaii Gov. Josh Green signed legislation in May that raises tax revenue to deal with eroding shorelines, wildfires and other climate problems. Officials estimate the tax would generate nearly $100 million annually.

U.S. District Judge Jill A. Otake last week upheld the law and the plaintiffs appealed to the 9th U.S. Circuit Court of Appeals. The U.S. government intervened in the case and also appealed Otake's ruling.

The order by two 9th Circuit judges granted both requests for an injunction pending the appeals.

“We remain confident that Act 96 is lawful and will be vindicated when the appeal is heard on the merits,” Toni Schwartz, spokesperson for the Hawaii attorney general's office, said in an email.

The order temporarily halts enforcement of the law on cruise ships while the appeals process moves forward, her email noted.

The lawsuit challenged only the law's cruise ship provisions.

Cruise Lines International Association spokesperson Jim McCarthy said he wasn't sure he could get comment from the plaintiffs given the timing of the ruling before a holiday.

Cities around the world welcome 2026

MELBOURNE, Australia (AP) — From Paris to Dubai to Sydney, crowds began ringing in the new year with exuberant celebrations filled with thunderous fireworks or drumming, while others took a more subdued approach.

A countdown to midnight was projected onto the Arc de Triomphe in Paris and Russians celebrated in snowy Moscow. In Japan, temple bells rang and some climbed mountains to see the year's first sunrise and a light show with somersaulting jet skis twinkled in Dubai.

Other events were more subdued. Hong Kong held limited celebrations following a recent fire at an apartment complex that killed 161 people. Australia saluted the new year with defiance less than a month after its worst mass shooting in almost 30 years.

A heavy police presence monitored crowds watching fireworks in Sydney. Many officers openly carried rapid-fire rifles, a first for the event, after two gunmen targeted a Hannukah celebration at Bondi Beach on Dec. 14, killing 15.

An hour before midnight, victims were commemorated with a minute of silence, and the crowd was invited to show solidarity with Australia’s Jewish community.

New South Wales Premier Chris Minns had urged residents not to stay away from festivities, saying extremists would interpret smaller crowds as a victory: “We have to show defiance in the face of this terrible crime."

Indonesia scaled back festivities in solidarity with communities devastated by floods and landslides in parts of Sumatra a month ago that killed over 1,100. Fireworks on the tourist island of Bali were replaced with traditional dances.

Hong Kong rang in 2026 without fireworks over Victoria Harbor after the massive fire in November. Facades of landmarks were turned into countdown clocks and a light show at midnight.

And in Gaza, Palestinians said they hope the new year brings an end to the conflict between Israel and Hamas. “The war humiliated us,” said Mirvat Abed Al-Aal, displaced from the southern city of Rafah.

Pope Leo XIV closed out the year with a plea for the city of Rome to welcome foreigners and the fragile. Fireworks were planned over European landmarks, from the Colosseum in Rome to the London Eye.

In Paris, revelers converged around the glittering Champs-Élysées avenue. Taissiya Girda, a 27-year-old tourist from Kazakhstan, expressed hope for a calmer 2026.

“I would like to see happy people around me, no war anywhere,” she said. “Russia, Ukraine, Palestine, Israel, I want everybody to be happy and in peace."

In Scotland, where New Year’s is known as Hogmanay, First Minister John Swinney urged Scots to follow the message of “Auld Lang Syne” by national poet Robert Burns and show small acts of kindness.

Greece and Cyprus turned down the volume, replacing traditional fireworks with low-noise pyrotechnics in capitals. Officials said the change is intended to make celebrations more welcoming for children and pets.

Police in New York City planned additional anti-terrorism measures at the Times Square ball drop, with “mobile screening teams.” It was not in response to a specific threat, according to NYPD Commissioner Jessica Tisch.

After the ball drops it will rise again, sparkling in red, white and blue, to mark the country’s upcoming 250th birthday. And Zohran Mamdani was taking office as mayor following a private ceremonial event around midnight in an old subway station.

Saaliq reported from New Delhi, India. Associated Press writers around the world contributed to this report.